Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q2 2020 Earnings Conference Call - Final Transcript

Feb 11, 2020 • 01:00 pm ET


Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome ladies and gentlemen to the Investcorp Earnings Conference Call.

Your speakers for today's call are Mike Mauer, Chris Jansen and Rocco DelGuercio.

[Operator Instructions]

I'll now turn the call over to your speakers. You may begin.

Michael C. Mauer

Thank you, operator, and thanks to all of you for joining us this afternoon.

I'm joined by Chris Jansen, my Co-Chief Investment Officer; and Rocco DelGuercio, our CFO. Before we begin, Rocco will give our customary disclaimer regarding information and forward-looking statements. Rocco?

Rocco DelGuercio

Thanks, Mike.

I would like to remind everyone that today's call is being recorded and that this call is the property of Investcorp Credit Management BDC. Any unauthorized forecast of this call in any form is strictly prohibited. Audio replay of the call will be available by visiting our Investor Relations page on our website at

I would also like to call your attention to the safe harbor disclosure in our press release regarding forward-looking information and remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections. We will not update forward-looking statements unless required by law. To obtain our latest SEC filings, please visit our Investor Relations page on our website.

At this time, I would like to turn the call back over to our Chairman and CEO, Michael Mauer.

Michael C. Mauer

Thanks, Rocco.

The quarter, which ended on December 31st marked our first full quarter as part of Investcorp. Our transition into the firm has been as smooth as we could have hoped, and we continue to be encouraged by how positively the market, our counterparties and our peers have reacted to our team joining the broader platform. We saw an almost immediate increase in inquiries, a deepening of our pipeline and a renewal of relationships with many fellow lenders, who we hadn't done much with previously.

Our ongoing work to reposition and diversify the portfolio remains our central focus. We think we're approaching a better balance across industries, and we have made tangible progress in increasing the number of new portfolio companies.

We have derisked the portfolio through smaller average position sizes in our new position and through selective sales in the secondary. Our conservative approach has not wavered. We endeavor to be selective about the structures we are willing to lend into to be disciplined about the returns we require for investing your capital and to be thorough in our due diligence process.

Chris will discuss our investment activity during and after the quarter. And then Rocco will walk-through our financial results. I'll conclude with some commentary about a few of our investments as well as some housekeeping items. We'll end with Q&A.

With that, I'll turn it turn it over to Chris.

Christopher E. Jansen

Thanks, Mike. We invested in six portfolio companies this quarter, including four new portfolio companies. All of our investments were first lien. We also had three full realizations during the quarter. After quarter end, we made three investments, adding two new portfolio companies.

We invested a